Reference no: EM132794686

The following describes the payroll procedures for a hypothetical company.

• Every Thursday, the timekeeping clerk sends employee timecards to the payroll department for processing. Based on the hours worked reflected on the timecards, the employee pay rate and withholding information in the employee file, and the tax rate reference file, the payroll clerk calculates gross pay, withholdings, and net pay for each employee. The clerk then manually pre- pares paychecks for each employee, files hard copies of the paychecks in the payroll department and posts the earnings to the hard-copy employee records. Finally, the clerk manually prepares a payroll summary and sends it and the paychecks to the cash disbursements department. The cash disbursements clerk reconciles the payroll summary with the paychecks and manually records the transaction in the hard-copy cash disbursements journal.
• The clerk then files the payroll summary and sends the paychecks to the treasurer for signing.
• The signed checks are then sent to the paymaster, who distributes them to the employees on Friday morning.

Required:

Problem 1: Prepare data flow diagram, an entity relationship diagram, and a systems flowchart.